European Union Trade Commissioner Maros Sefcovic has described the prospective free trade agreement (FTA) with India as the "mother of all deals." Speaking ahead of a high-level EU-India summit, he revealed that negotiations are "very close" to fruition.

This landmark pact promises to unlock India's vast market for European companies, marking a pivotal shift in global trade dynamics.

Sefcovic highlighted India's steep import tariffs, which can reach up to 150% in certain sectors. He noted that these barriers have historically shielded large swathes of the Indian economy from European exporters. The FTA aims to dismantle these obstacles, creating unprecedented access for EU goods and services.

The agreement would establish a free trade area spanning roughly two billion people. While sensitive sectors will remain protected, the deal focuses on mutual benefits. Sefcovic emphasised that it represents "the largest trade deal ever," building on a decade of surging bilateral trade.

Around 6,000 European companies already operate in India, underscoring the market's appeal. The Commissioner views the FTA as a strategic diversification move for Brussels, reducing over-reliance on trade with the United States and China. Indian officials have reciprocated with signals of openness to foreign investment.

Recent high-level engagements have accelerated progress. Sefcovic met Union Commerce Minister Piyush Goyal in India, marking their tenth in-person discussion. Posting on X, Sefcovic expressed confidence in concluding the FTA soon, crediting intense negotiations over the past year.

Goyal echoed this optimism, praising the "sustained and constructive engagement" between teams. He affirmed the EU as a vital economic and strategic partner for India. Both leaders stressed a commitment to an ambitious, mutually beneficial pact that bolsters businesses and prosperity.

The EU-India summit, hosted by Prime Minister Narendra Modi in New Delhi on 27 January, looms large. Leaders are set to adopt a joint comprehensive strategic agenda. This framework will reinforce the partnership, deepen cooperation, and promote stability across regions.

Negotiators are now "checking their final numbers," as Sefcovic put it in his Euro News interview. The focus remains on reducing tariffs while safeguarding Indian interests, such as farmers and micro, small, and medium enterprises (MSMEs). Earlier talks in Brussels with Goyal had already prioritised these protections.

India's tariff reductions could integrate its industries deeper into global supply chains. For Europe, the deal counters economic uncertainties by tapping into India's growth trajectory. Trade volumes have risen sharply, positioning the FTA as a natural evolution.

Sefcovic's Brussels-based role as Trade and Economic Security Commissioner adds weight to the discussions. His meetings underscore the EU's push for a rules-based trading system. India's readiness to host the summit signals strong political will on both sides.

The pact excludes politically sensitive areas to ensure a "positive outcome." This pragmatic approach has sustained momentum despite complexities. With 20 of 24 chapters reportedly closed, virtual daily engagements continue to iron out remaining hurdles.

For India, the FTA aligns with 'Make in India' ambitions by attracting EU technology and investment. It could enhance manufacturing capabilities in aerospace, defence, and renewables—sectors of keen interest to New Delhi. European firms stand to gain from India's burgeoning consumer base.

Geopolitically, the deal strengthens Indo-European ties amid global tensions. It complements India's multi-alignment strategy while offering the EU a foothold in the Indo-Pacific. The summit's strategic agenda will likely cover clean energy, digital connectivity, and supply chain resilience.

Piyush Goyal's Brussels visit earlier in January had set the stage, focusing on expediting talks. Both sides reiterated protections for vulnerable sectors, balancing market access with domestic priorities. This balanced diplomacy has kept negotiations on track.

As the summit approaches, expectations run high for a breakthrough. Sefcovic's bold characterisation reflects the deal's transformative potential. A successful outcome could redefine EU-India economic relations for decades.

Based On ANI Report